Grow Ltd$.$ Is evaluating China as a potential investment opportunity. Analysts collect the following data on the Chinese and the US markets. Expected returns: China $=10\%,$ US $=8\%.$ Volatility of returns: China $=40\%,$ US $=16\%.$ The correlation between the US and the Chinese equity returns when measured in dollar terms is $0\mathrm{.}50.$ The risk$-$free rate in China is $3\%$ and in the US is $1\%.$ Which of the following is true?

Group of answer choices

The hurdle rate for Chinese equity markets for the US investor is $11\mathrm{.}75\%.$

The hurdle rate for Chinese equity markets for the US investor is $9\mathrm{.}75\%.$

According to Hurdle Rate criterion, Grow should invest at least some amount in the Chinese equity markets.

Both B and C$.$